UK investment firms are gearing up to cash in on Space X’s blockbuster float after backing the company in its early years and seeing the value of their stakes rise to a total of about $5 billion.

Scottish Mortgage Investment Trust, the UK’s largest such trust, has made a significant paper profit on SpaceX since it first bought a stake in 2018. Between then and 2021, the FTSE 100-listed group bought shares worth $200 million, which are now valued by the trust at $3.94 billion, making the stake the top holding in its portfolio.

In a statement released earlier this month, Scottish Mortgage explained it was holding SpaceX at a valuation of $1.25 trillion because the higher figures quoted in media outlets were “unverifiable reporting and should be treated accordingly”. 

The investment trust said: “Our investment teams have been meeting with SpaceX management directly in recent weeks. Once listed, our holding converts from a private asset to a publicly traded security marked to market daily, which will introduce more visible movement into our net asset value.”

The other listed vehicles set to cash in on the deal include Edinburgh Worldwide Investment Trust, Baillie Gifford US Growth Trust, Schiehallion Fund, RIT Capital Partners, Monks Investment Trust and HarbourVest Global Private Equity, which have stakes worth a total of about $1 billion.

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Analysts at Jefferies said that most investors were subject to a lock-up period of 180 days, although they will be granted a staggered release of part of their holdings before the end of this period.

The analysts said that the plan “indicates a relatively swift timetable” for shareholders seeking to monetise their holdings.

Meanwhile, American hedge funds are preparing for some of the largest payouts the sector has seen. D1 Capital Partners, a New York-based fund set up by the billionaire Dan Sundheim, reportedly holds a stake worth $20 billion, having first invested in the company in 2020.

Darsana Capital Partners, founded by Anand Desai, holds a stake that is reportedly worth more than $10 billion, having first invested in 2019.